What's Insurance Got To Do With It!? (with Bruce Weinstein)

ABOUT THIS EPISODE

Listen to Amazon best selling author, John Browning, as he talks with Bruce Weinstein. Bruce is an expert in the insurance industry and he shares some wisdom with us regarding risk managementWhat is too much insurance?What is not enough insurance?What types of insurance are relevant to me and when?Am I overpaying for insurance? This is an insightful discussion between John and Bruce that will shed light on what many times is a very confusing topic. Learn more about how to build your life and not just a portfolio when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert in number one Amazon best selling author, John Browning Jones the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. Hello, everybody, it's John Browning on the building your life podcast. Today we've given Michael The lawn the day off again, which he's very appreciative of, and we have Bruce Weinstein on the call with us today, and Bruce is everything insurance and a little bit more on top of that. Even I'll let him talk a little bit more about what he does and how he how he got to where he is today, which is a pretty impressive place, Bruce, and we're really happy to have you on the podcast today to talk about this. But the reason that we're having you on today is because a big part of comprehensive wealth management involves insurance, and that's not something that I am an expert yet. This is one of the things we talked about on the building your life podcast. Is Building a team around what we do here at Guardian Rock, wealth of people that we know, we like and, most importantly, that we trust, and Bruce Year are definitely one of those people. So we're really excited to have you here today. One quick housekeeping item is that this is not investment advice. So if you're looking for that, please give me a call. You can text the word life to twenty one thousand, and that involves a really deep conversation getting to know you and really developing what it is you want, more importantly, why it is you want that, and then we manage to that outcome. So if you want that, this is general information that we think you're got to find some value. And so, Bruce, introduce yourself a little bit, tell us kind of how you got to where you're at right now. Thanks, John, I appreciate it. So it's Bruce Weinstein. Wine seemed wealth insurance solutions. My wife and I live down here in Delray Beach from New Jersey. Originally spent thirty years up in the Princeton market as a financial advisor and asset manager like you, but we sold that practice in two thousand and sixteen and then last year we launched Weinstein wealth insurance solutions to focus solely on the insurance side of things. So now I collaborate with people like you and help their clients understand a deeper sense of insurance. But I still have enough, you know, fortitude over the years from the insurance item and the scars and the and the such. So you ...

...know, we're happy to be here. To your point about investment advices, a line I came up with the other day is I don't manage people's money, or I didn't, I don't anymore anyway. But we don't manage people's money, we manage people's expectations, and I think that goes to what you do most is it's not about the investment, it's about what you're trying to accomplish and then having those expectations set, whether it's insurance related or investment related, it's life related. What are your expectations? What are you trying to get from point a to point B, and then people like you and I help people map that course with the least amount of exposure for risk standpoint? True? Well, you know, Bruce, I tell you, when I talk to people about insurance, when I look at their entire picture, and I I talked about people about insurance, one of the things that they really tends to be like the pain that hits them right here is is paying that insurance premium and they're like, why am I doing it? Can I self insuring? It's on all this stuff in and there are certain cases that I do find that people are kind of a bit over ensured for what they need and their specific situation, which is again why I really like working with you, is because you're not one of those guys that is looking to over insure. You're looking to at the appropriate amount of insurance. What would you say to someone who is just like, I just don't want to pay that premium? What's the what's the main value of insurance? Why would you want to pay that premium? So it's great question. I'll give a couple of points around it. Is We are a very heavy insurance based society in this country. You're going to drown in all the insurances that are available and so you've got to prioritize your needs based upon your current financial situation. And then eventually things fall off and other things replace. It in evolves to know different things. So a younger family might just need some in expensive term insurance, but then when they get into their s or S S, they might need long term care insurance. A young person working or self employed professional might need disability insurance to protect their income, because if you and I get hurt or get sick or in an accident, who's run on the shop, nobody's bringing in the revenue. I better have disability insurance to make sure I'm paying my bills right. So life is going to dictate certain things. Nobody likes insurance, no way likes paying for insurance, but they like having it when a crisis occurs. And so you know, I yeah, do I hear Belly Achin? Yeah, all the time, of course, like people are just gagging and I get it. Health insurance especially, probably one of the worst environments historically for this country. You know, life insurances can be relatively inexpensive for a lot of people and feel a big gap and void, but health insurance has gone crazy. So yeah, and you know, one of the things that you have done, that I've seen you do, is there's there's a...

...big discrepancy between one health insurance and the next health insurance as far as cost goes and, more importantly, what a lot of people tend to not pay, what I think is enough attention to, is what's covered, how much is covered, when is it covered, all of those nuances of insurance. That is the reason we hire a guy like you to keep it straight. I mean, can you give us all? I think you gave me an example or earlier we were chatting about somebody that you saved, like or the guy. You say ten grand a year and I think dirty. I got another client for thirty gram but yeah, I was telling you about one earlier, about just about ten. Yeah, how does that happen? Like it you give me a little backstory, like how in the world is don't give any names, obviously, but no, it's amazing. No name. Yeah, so it's amazing what people don't know. And even more, probably not surprising because you're and idea with the public for so many years, is people just don't really bother that there's a level of ampathy to check. So in the insurance world you should reshop every now and then, depending on what it is, whether it you're auto, your homeowners or whatever. Right. So in this particular case we had a family that moved from New York four years ago and moved to Bocca, moved to South Florida. For those listening outside the South Florida market, booker a't on Florida and not really knowing otherwise, kept his health insurance plan, which was a New York based plan, and his latest statement was getting a fifteen percent rate increase and was now exceeding thirty five hundred dollars a month for a family of four. Okay, that's forty twozero. On top of that, he then complained that it doesn't cover anything down here, so why am I paying all this money? And I'm looking at him and I'm like, you got a New York plan. People don't realize like, at least for health insurance, it's very regional based, literally by county. So his New York plan would only be good if he was in New York. But to see regular doctors, hospitals, whatever, he's always out of network, which of course you don't get the same coverage. So we we did some home work and we gave him some options and we were able to get him a better plan with lower deductibles, lower maximum amount of pocket which is lowering his overall exposure, and we saved him thirty fer s of dollars a year. Oh my goodness, wasted a hundred and twenty. Found Bell. His rates weren't that high four years ago, but still twenty five thousand dollars, twenty thous he probably wasted a hundred thousand dollars because he never picked up the phone or checked with somebody to they hey, did...

...you move down in from New York? What did you do? Right, right, yeah, that's that's insane. That's a lot of money. So, as you hear me speak at different events and groups or whatever, I'm like, you owe it to yourself to always check. Yeah, and and I'm thinking too, as people age out and retire. This is a big thing that I talked to people about because the most people it never really crosses there my maybe they think about a little bit, doesn't really cross their mind that right now their employer is paying at least a portion. It may not seem like it. It may still seem painful, painful, but when you retire, who's covering all of the healthcare cost I I found over my financial advisory days and helping people plan for retirement, it was the number one not the investment to the performance of the portfolio, but they're probably biggest concern was the health insurance expense and obviously long term care right, which was, you know, later on thing. But to get them over the hump to accept retire and retire ring retirement was having a clear understanding of what their health insurance expenses and exposures were, especially pre Medicare age, which is sixty five. So if you and I wanted to retire at sixty two and we're getting a thousand dollar a month health insurance plan from our employer covered, am I getting that when I were hired at sixty two, or they offering me that in retirement benefits? Most corporations don't provide that anymore. Federal Jobs, government jobs, you know, local municipalities might offer medical but very rarely this corporate Americle offer it. They're still out there, but it's less and less and less because it's choking. You know, it's choking everybody. So you know, for you, if I get if you were to do it, and you say, well, what do I have available that can be as comprehensive and not break the bank, then you have to do your homework and then eventually you have to build it into your budget. Right, if you're going to retire at sixty two and whatever, age, fifty five, I don't you know, we want it retires earlier as possible. Right. So it likes too short to not but you got to put it in your budget. And and you mentioned long Term Care Insurance and you know you, and I have talked to you. My wife and I used to run a business up in the Chicago land area that was providing people care in their homes rather than in a home. We sold that business a few years back, but we saw the need for long term care insurance in a big, big way and we saw some really great stories from those who had it and we saw some really sad, difficult stories from those you do them, and I understand. So back in the past, were to say back in the past long term care insurance kind of got a bit of a bad name because they be insure companies...

...didn't charge frankly enough, right. And the journey they under estate underestimated their actual roil tables. Right. Yeah, I've been doing I don't need to cut you off. So I've been doing a long term Kay, I've been doing long term care planning with clients since the early s. So and twenty eight seen it all. Yeah. So, you know, we were in in the early part and we built it out again part of the budget. Today there's more of a hybrid product with life insurance put. Back then it was straight long term care, assisted living, Home Care Options and riders lifetime coverage, which was all been ended right, like not just a five year plan but a lifetime coverage plan. And then I would I framed it as there's Cadillac, there Chevy and there's Hunday, and I'm not disrespecting other cars, but there's different levels of cars or services. So very good. No test, there's no test of one thousand nine hundred and ninety four. But I wish, right, we could have been early investors. Yeah, so you know, you could say Mercedes, you know, whatever it is, but you know you had the high end car, which was a high end level of long term care insurance. So if you could afford it. Plenty people buy cadillacs and there are plenty of people that buy huntings right and then some people buy chevies in between. So the long term care conversation was the differences in the level of coverage, the length of coverage, the and then the costs. And so where my clients, and most of them, bought these, they bought lifetime plans with a five percent cola. And then we use the average prices in the New Jersey Market of the time, which was between one hundred and fifty two hundred dollars a day. Okay, fast forward fifteen years later and THECOM and the Gulf War and then you know, these financial crisises that were coming about and all of a sudden the sixty five year old they sold long term care to is eighty and eighty five. They haven't died off their living longer. They're in a nursing home for three years and they're going to live to a hundred and the nursing home insurance has to pay for this. And that's a cash register is that's just ringing and ringing and ringing. And so what happened, and this goes back a good ten years ago, since the reset is all the clients got letters and they were basically saying this is going to be the new rate, which is unheard of, or from the same way up, way up, and and they again, I don't know what the audience is, you know, Pritty to you understand, and I'm not trying to be too technical, but an insurance company cannot just raise rates randomly and say John's a bad risk. All of a sudden. They have to go through a regulatory approval process with the Department of Insurance and justify why the rate increase is necessary and have the data and the statistics behind it. And so they have to say, look, we made an actuary old miscalculation. The average life expectancy was seventy eight. Now it's a...

...eighty five. We're going to be, you know, going belly up if we can't raise the rates, because they can't come after just the individual, so they have to raise the whole group. And of course the regulators to like well, we'll let you do it twenty percent increase, we can't let you do forty. So they started to slowly ratch it up rates over a couple of years so that all the clients got letters and we basically had to decide pay more or take a little bit less and then, depending on their budgets, you know, we had to recalculate. You know what they took. But you can't find a product today that gives you lifetime coverage. Don't exist and most of what you're seeing our sizeable premiums tenzero, fifteen thousand dollars as standalone coverage. So you know what I used to do for three, two, five, maybe six thousand a year is triple the price, if you could even find it. One of the things, though, incorrect me if I'm wrong, is that at least with the new policies, or many of the new policies, they have a life insurance component to it. So you know, one of my complaints with those plans was it all. What if I never need I walked her care? I paid all this money and premiums, but now you can get it with some life insurch right. Correct. So I mentioned a hybrid product. That's what I was referring to. Is it's a combination of life insurance with a proportion of the death benefit paid towards long term care, so that one way the other. Let's just use a half a million dollars. You have a half a million dollars a life insurance and you get two percent, which is tenzero dollars a month paid out for long term care. Now tenzero may not be enough, depending on where you are, what you are this is just an example, okay, from man purposes. So that's fifty months of coverage before you run out of money. Okay. Now, you and I had our age, you know, gotten willing. We won't need it for thirty years. So you know, when I'm eighty eight and I finally need this, is fifty months enough? Probably? You know. I don't know, but if I never use it and I got hit by a bus at sixty seven, my family gets five hundred thousand dollars pin. So one way or the other the money's coming in and returned. And to your point, a lot of people are like, I'm going to give you six thousand dollars a year for twenty years and never get a penny back if I just died, and that was built into their calculations. So that did evolve where we had policies for a period of time that I don't know. You wife saying what your wife saying? Yeah, Christine, Yep. So it was basically a joint pool of money, not an individual pool of money. So I'd get you three years, I'd get Christine three years. You had six as a family. You die and never use it. God Forbid, she's got six years. Now she dies, it's gone, but at least you know you were able to buffer some of...

...the that exposure. Was a couple and then even later on they got into the non forfeiture type conversations where premiums were refundable so that you know you at least got your money back if you never used it. But again, that quest more money. So the premiums just keep going higher where people are like all right, well, and I think to for the people listening on in this podcast, one of the things that I like to say its people think of things. I got to do at all. It's not necessarily the case, right. You can guard against a portion. It depends on what your budget is and and where you are, and that's why we say it's not investment advice here, this is not insurance advice here, this is just general information that we hope provides value to the listener. But I wanted to make sure, by the way, before we end the bruce is a fantastic resource. I want to make sure, Bruce, what's the best way to get to you? We got a couple different ways you could try and reach us. So we've got our website, which is Weinstein wealthcom. My last name Weinstein Wealth. I've got text the word plan man, all one word to twenty one thousand. Like John has his life, I have plan man. We're getting a eight hundred number. I got back eight for four plan man, but we have a current number, if you can see it behind me, is eight four four for we cover. So you can call, you can text, you can hit the website, you can email us, multitude of ways. Obviously they can come to you. If you can, you can come to me too. If those are know me, I can get you in touch with Bruce and, like I said, he's a fantastic resource. But I'm really super stoked that you came on the wet podcast day. We want to have you back maybe to drill down and maybe the very some very specific things that we can talk for hours. Yeah, we could. We could just keep on going right, but yeah, I want to let people go get on with their day. But thanks so much, bruce, for for a fure night or bit of value. I'm bet to have you on mind. Is Okay to plug? Yeah, absolutely. Tell us that those new, brand new podcasts right so by. Your podcast is awesome. In fashion of John and what he's done, I've been motivated and encourage. So we're going to have asked the plan man launching as a podcast which is tied to the text plan man, in February, and it'll be similar to what you and I are doing here, is you'll come on mine and will collaborate some more. We're going to bring on real life questions, real life candidates, or case study if you will, where, if you weren't in the business, you would say, you know what, my wife and I are dealing with this and the so we're you know, we're going to make it. My subtitle is everything you wanted to know about finances and insurance, but we're afraid to ask. So it's a safe for them, a safe...

...environment. I kind of joke. I want to be the Dr Ruth of you know, insurance. So you know what are your problems and how can we help? And then you know, from investment side, people like you will be brought in to you know, collaborate with with them as those needs, because we don't do that side anymore. And then we're just here to help the public, like you, Ares, be informative and influentially in the knowledge. We're doing it too long not to share the wealth of knowledge. So yeah, that's just so much stuff out there that people just don't know that we just know a second nature because it's what we've done for the past thirty years. Right. So if we can help people by listening to the PODCAST, awesome. Right. So it's what is it one more time where your new podcasts? Don't ask the plan man, ask the plan mat so all right, thank you. Appreciate it. Thanks for having me. All right, we will see you. I'm going to see you probably source the end of this week, right Friday. So I'll see you on Friday. Thank you, my friend. Appreciate it. We'll see you. Money really is a big part of our life and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or ensure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLLC and its affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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